The Greek manufacturing sector remained on an upward trend during August, according to the latest PMI data from S&P Global, although the growth rate slowed down again. Specifically, S&P Global’s seasonally adjusted Purchasing Managers’ Index (PMI) for the Greek manufacturing sector closed at 52.9 points in August, down from 53.2 points in July, indicating a steady but slower improvement in health of the manufacturing sector. Operating conditions have been improving on a continuous monthly basis since February 2023, but the recent rate of increase was the weakest since last December.

Slower output growth during August contributed to the less robust rise. Greek manufacturers surveyed said a stronger inflow of new orders supported a rise in output, but the pace of growth eased to the softest since September 2023.

Although new sales increased further in the middle of the third quarter, the growth rate slowed for the fifth consecutive month and was the weakest on record so far in 2024. Panel members said that demand from the customer side held up, but some customers in Europe were more hesitant to buy. Export orders grew at only a marginal pace. Although stronger than the survey average, the pace of growth was the slowest on record in eight months.

Shipping delays and supplier logistics issues remained evident in August, as supply delivery times lengthened by the most since January. Supplier performance deteriorated markedly for the ninth consecutive month.

Although at a slower pace, the input costs of Greek goods producers rose sharply in August. Higher shipping costs alongside higher input prices, including metals, supported the increase, according to members surveyed.

Accordingly, output charges increased at a historically higher ratewhich was however slower than July. Sales prices rose for the twelfth consecutive month.

Slower growth in new order inflow weighed on input purchases and employment growth in August. Growth rates for both softened and were the softest on record so far in 2024 as companies reported sufficient capacity to process incoming new work and use inventories to meet order requirements.

Meanwhile, inventories of both supplies and finished goods fell in the middle of the third quarter. Inventories of finished goods shrank at a faster pace as companies again reported a reduction in purchase inventories. Although only marginal, the rate of decline in supplies was the fastest since April.

End, the Greek manufacturers remained upbeat on output growth over the next year due to planned investment, hopes for stronger demand conditions and increased activity in the construction industry. However, concerns about a weakening sales environment weighed on optimism levels, which fell to their lowest level since November 2022.